The Home Auction Option

Auctions aren’t just for collectables, art, and cars.

People are buying millions of items each day on internet auction sites. And, Real Estate auctions are one of the fastest growing real estate sales trends, especially for Bank Owned Homes and the high dollar, high-demand California housing market.

Homes sold at auction in a “Live Spirited Atmosphere” of competitive bidding, often command prices that meet or even exceed the expectation of the sellers.

Who would choose a “Home Auction” to sell their home?

To start with, a person who chooses the Home Auction Option, would probably answer “Yes” to the below questions:

Q: Would your property sell for more if ALL qualified and interested potential buyers had an equal, public, and well promoted opportunity to purchase your home?
Q: Would you like to personally “select the date” that your home goes into escrow and closes escrow?
Q: Would you like to insist that all bidders agree in advance to special terms such as an “as-is” purchase or a 30 Day Rent Back (to allow you more time to pack-up and move or find another home to buy or lease).
Q: Would you like to have all the showings of your home take place during just a limited number of days which conveniently fit into busy schedule of you and your family members?
Q: Would you like the Peace of Mind of knowing that the Winning Bidder will lose a Big Deposit if they do not close the sale?

The truth is that auctions are not for everyone… even those who answer “Yes” to every question above.

But, depending on market conditions in the price segment for your home and your goals, a home auction might be a very good choice for you.

Why are we the best choice if you want to auction your home?

Because COLDWELL BANKER – Campbell Realtors is a full service real estate brokerage we can either sell your home in a conventional transaction, or offer you something special that few other real estate companies can match… the option to sell your home using the “Auction-Option” thanks to our association with one of the most experienced and respected real estate auction firms in California, HANSEN Auctioneers.

Our Auction Team is prepared to help you make your move as fast, hassle-free, and as profitable as possible.

Interestingly, we offer the Auction Option at “zero” extra commission… the cost for us to conduct the auction is just six percent… the same as you would probably expect to pay a full service real estate broker.

Most auction companies charge 8 to 10 percent plus thousands in additional advertising fees… but not when you hire us.

I never thought of selling my home at auction… how does it work?

A series of 5 productive steps begins when you phone us or email us.

#1 Scot Campbell, President and Managing Broker of COLDWELL BANKER – Campbell Realtors will meet with you and examine your property.
#2 We will assess and discuss your home’s marketability using the same criteria prospective buyers will use on auction day. With your approval we will pick the auction date and location, formulate a sales plan that will bring the highest returns, and finally assign responsibilities.
#3 Approximately 21 to 60 days before the auction date, COLDWELL BANKER – Campbell Realtors will launch the marketing including Open Houses, Flyers, MLS, direct mail, telephone, internet, and email blasts to Realtors and our exclusive buyers.
#4 Prior to the auction date, COLDWELL BANKER – Campbell Realtors & HANSEN Auctioneers will meet at the auction site with all who have assignments. The auction will begin on time and, after auction rules have been clearly explained to the audience, the bidding will begin. We require “good faith” deposits from all interested in becoming “registered bidders” and the successful bidder’s deposit is non-refundable.
#5 All Auctions are recorded. At the close of the auction one or more members of the COLDWELL BANKER – Campbell Realtors Team will assist in placing the property in escrow and finalize details necessary to meet your terms and conditions.

All fees are discussed in step #1… we want no surprises! Upon completion of a successful auction, all costs and commissions are paid through escrow. COLDWELL BANKER – Campbell Realtors. We select independent escrow and title companies with experience in real estate auctions to make sure the escrow process runs smoothly.

What if no one comes to the auction, or the bids are too low?

When you hire us to do a Real Estate Auction, our goal is to help you sell your house at the highest possible price by creating a spirited competitive bidding environment, but on rare occasions a home still may not sell. In that event, we will continue listing your home on the Multiple Listing Service and conduct another auction in 60 days, if you so desire.

Are bidders allowed to have a “Buyer’s Agent”?

We expect and hope that most of the registered bidders will be represented by their own licensed Realtor. The property will be listed in the Realtor MLS, and we will make it very easy for cooperating Realtors to register their buyers. A full 2.5% buyer’s agent commission will be offered to cooperating members of the Realtor Multiple Listing Service who register their clients in accordance with auction registration procedures. We believe that our good reputation with other Realtors and our effective promotion of the auction to members of the brokerage community is the reason our auction services are far superior to the national auction houses and internet auction sites which very poorly invite (if not outright discourage) the participation of cooperating MLS Realtors.

Here’s a summary of What We Do, and What You Can Expect:

Listing your home with COLDWELL BANKER – Campbell Realtors using the “Auction Option” is sometimes only slightly different than a typical Full Service Real Estate Listing. After you sign the Auction Listing Agreement, the first step is to get your home ready:
Seller Home Warranty: Our action team will immediately purchase, at no cost to you, a “Seller’s Home Warranty” for the property which will cover the major systems in the house all the way up to the moment the home is transferred to the new buyer. There is just a $55 deductible if a newly detected home repair is necessary prior to the escrow closing.
Certified Appraisal: Our auction team will pay for a certified appraisal for your home. We do not guarantee that the home will “auction” for the full appraised value; however, we believe providing a copy of a certified appraisal report to prospective bidders will help them understand the market value of the property… or at least the approximate value lending underwriters will assign to the property during the escrow should the buyer elect to originate a mortgage.
Professional Property Inspection: Our auction team will pay for a professional property inspection for your home. The report will help bidders understand how well your home has been maintained and what, if any, repairs they will need to make after the close of escrow. This report also identifies repairs you may want to make prior to the auction.
Termite Inspection: Our auction team will arrange for a Structural Pest Control Inspection of your home, and a written report will be made available to bidders. This report will help you understand the approximate cost of the termite repairs and treatment during escrow since this is a cost normally paid for by the seller.
Preliminary Title Report: Our auction team will obtain a written Preliminary Title Report for your home, and we will make the report available to bidders. This report will verify that there are no liens for the buyer to be concerned about and will provide information on the lot size, easements, and deed restrictions.
Natural Hazards Disclosure Report: Our auction team will obtain a Natural Hazard Disclosure Report for your home and make the report available to bidders. This report will indicate if the property is located in a zone which might be a concern to the buyer and provide details on property tax assessments.
Home Repairs & Cleaning: Our action team recommends that consider making some (or most) of the home repairs found during the home inspections, and we insist that the property be thoroughly cleaned to maximize the final auction price.
Professional Property Staging: Our auction team will provide a Staging Professional for an in-home consultation. We insist that the seller invest in a “reasonable staging effort” to help maximize the final auction price.
Seller Disclosure Packet: Our auction team will provide all the required California Department of Real Estate disclosure forms, and help answer your questions as you fill out the packet. Copies of these forms will be made available to bidders.
Professional Photography: Once the repairs, cleaning, and staging are done, our auction team will arrange to have the property professionally photographed.
Creation of Auction Purchase Agreement Forms: The Standard Real Estate Auction Purchase Agreement form will be entirely completed except for the final purchase price which will be entered after the winning bidder is and price is identified at the auction. A pre-auction copy of the form will be made available to bidders.
Creation of a Property Auction Website: We will create a custom webpage for the property which will provide promotional photography, property details, reports, disclosures, Auction Purchase Agreement, basic information on the home auction process for bidders, auction day information, property previewing information, and specific bidder registration rules and information. There will also be instructions and buyer registration information for Realtors who are acting as a “Buyer Agent” for the auction.
Creation of Full Color Brochure & Auction Pamphlet: Our auction team will create a full color brochure and auction pamphlet which will be distributed to prospective bidders and cooperating MLS agents. This brochure/pamphlet will provide basic information on the property and the auction, and will provide the URL to the dedicated Property Auction Website which offers pdf copies of reports, disclosures, auction purchase agreement, and registration instructions.
Advertising and Promotion: At about the same time the home goes into the MLS computer, our auction team will launch an advertising and promotion program which will include print, newspaper, and electronic marketing. A target audience of potential buyers will be indentified and efforts will be made to effectively reach these buyers and promote the upcoming auction.
Realtor Caravan & Open Houses: Once the home is in the Realtor MLS, we will schedule a broker caravan and there will be Open Houses which will allow bidders to inspect the home and decide how much they are willing to bid on Auction Day.
Buy-it-now option: Occasionally, there is a bidder who does not want to lose the home at the auction and will insist upon presenting their offer for consideration prior to the auction day. The deadline for “Buy Now” bids will be three days before the auction, and all bids will be submitted to you for consideration.

With COLDWELL BANKER – Campbell Realtors & HANSEN Auctioneers as your guide, you are in control of the transaction.

We survey and define the market to help you establish a minimum sale price for your home, and decide if a home auction is advisable.
We help you prepare your home to obtain the best possible price.
We never accept less than this agreed-upon amount.
We also develop an effective advertising campaign.
We handle all the paperwork, manage the auction, and even shield you from annoying bargain-hunters and lookie-loos.

If you are interested in the “Auction Option”, please contact Scot Campbell for a face-to-face no obligation meeting to discuss the sale of your home.